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There are other ways to reduce “risk” than go with bonds after retirement. I believe that increase cap, smoothing and reserve can go a long way in reducing risk while maintaining a higher equity allocation. The transition from pre to post retirement should not go hands in hand with having a more conservative portfolio. A person with high risk tolerance, doesn’t become low risk tolerance because of withdrawing from his fund. Bonds reduce the short term volatility of the rate of return and the rate of return. In the long run, reduced rate of return can be more devastating than short term volatility. In the end, having lower rate of return will reduce withdrawing ability by as much as 50% if you compare the extreme.

It removes the risk of ruin. It is self adjusting if too conservative or aggressive assumption are used. It reduces the sequence of return risk. It removes the hyperinflation risk. It reduces short term volatility.